G.R. No. L-9556 and L-12630; March 29, 1958
REPUBLIC OF THE PHILIPPINES, plaintiff-appellee, vs. BIENVENIDO GARCELLANO, ET AL., defendant. ROMAN CATHOLIC CHURCH of Zamboanga and BENITO R. ZABALA, defendants-appellants.

FACTS

The Republic of the Philippines filed an expropriation case for 280,885 square meters of land needed to lengthen the Zamboanga (Moret) Airstrip. The lands, owned by various persons including appellants Roman Catholic Church of Zamboanga, Benito R. Zabala, and Luisa Santaromana, were agricultural (rice or coconut lands) before World War II. During the war, Japanese forces occupied the lands, destroyed improvements, filled them with gravel and earth, and constructed an asphalt runway for use as an airfield. After the war, American forces took over, followed by the Republic of the Philippines on February 2, 1948. The government, through various agencies, administered the airfield and paid some rentals to owners, including Santaromana. Negotiations for purchase failed, leading to the condemnation proceedings filed on May 23, 1952. A commission assessed the just compensation, with the majority recommending P2,000 per hectare for agricultural lands, P1.00 per square meter for residential portions, and consequential damages for some lots. The lower court approved this report. Appellants argued their lands should be valued as residential, not agricultural, due to the wartime conversion. The Solicitor General contended the lands remained agricultural, citing Republic vs. Lara, and that the government succeeded to the Japanese improvements without obligation to pay for them.

ISSUE

1. Whether the expropriated lands should be classified and compensated as agricultural (their pre-war character) or residential (their post-war converted state).
2. Whether appellants are entitled to rentals for the government’s use of their properties from February 2, 1948, until the filing of the expropriation complaint.
3. Whether appellant Luisa Santaromana is entitled to consequential damages for the unexpropriated portions of her land.

RULING

1. The Supreme Court affirmed the lower court’s classification of the lands as agricultural for compensation purposes. The Court held that in eminent domain, the owner recovers only for what is actually lost at the time of taking. What was taken from appellants were agricultural lands, as they never regained possession or use after the Japanese occupation, and the wartime conversion did not change their fundamental character for compensation. The valuation of P2,000 per hectare was upheld. The Court distinguished this case from Republic vs. Lara, which dealt with compensation for improvements, not land classification. Damages caused by Japanese forces were not the government’s responsibility and should have been claimed with the War Damage Commission.
2. The Court modified the decision regarding compensation for the government’s pre-complaint use. Appellants Roman Catholic Church and Benito Zabala are entitled to legal interest on the compensation amounts from February 2, 1948 (when the Republic took possession), until the government made a provisional deposit in court. This interest serves as compensation for the use, not separate rentals. After the deposit, only any unpaid balances shall continue to earn interest until full payment.
3. The Court affirmed the commissioners’ finding that appellant Luisa Santaromana is not entitled to consequential damages, as the unexpropriated portions of her land were found to be at a safe distance from the runway and large enough for profitable use. The commissioners’ report was entitled to great weight and not disturbed.
The appealed decision was modified accordingly, with costs against appellant Santaromana in G.R. No. L-12630.